Replies to post #2044 on VirExit Technologies Inc (VXIT)

[OMOLIVES]

Check out these two adjustments I had to make Since June 11th:

On July 13, 2018, the Company entered into a Securities Purchase Agreement whereas, EMA Financial, LLC (the "buyer") wishes to purchase from the Company a 10% convertible note for a principal amount of $83,500. On July 13, 2018, the Company issued a convertible promissory note (the “note”) to the buyer for $81,830 in proceeds, after a $1,670 original issue discount. The note matures on April 12, 2019. The note is convertible at a conversion price of 50% of the lowest trading price during the 10 days prior to the conversion date. At the closing, the Company paid closing costs and a consulting fee totaling $7,340. Accordingly, the Company recorded a debt discount of $9,010. At issuance, the holder’s option to convert was active and the Company recorded a derivative liability of $48,702, in which the fair value of the embedded derivative was determined using the Black-Scholes valuation model. The derivative liability was attributed to debt discount. The debt discount is amortized over the term of the note or to the date of conversion, and the derivative liability is revalued at each conversion or reporting date to fair value. Any change in fair value is credited or charged to the statement of operations in the period. During the six months ended February 28, 2019, the holder effected four conversions for a total of 700,000 shares to extinguish a portion of the convertible note payable. As a result, the Company recorded a loss on extinguishment of debt of $18,490.

Active immediately..eh? Look at the discount though. The discount didn't and was not adding up. Couldn't see where so much of the note had gone through conversions(missing a rough 37k) I went back and looked at the 10k. They received an extra discount(net of discount...it was large..ha!). I then had to change the multiplier from 50% to 26.75%.

Second was Power up:

On June 21, 2018, the Company issued a convertible note to Power Up Lending Group, LTD. for $128,000. The note bears interest at 12%, matures on March 30, 2019, and is convertible into common stock at 58% of the lowest 3 closing market prices of the previous 10 trading days prior to conversion.

They changed the wording:

On April 2, 2019, the Company issued a convertible promissory note to Power Up Lending Group, LTD in the amount of $25,000, resulting in $22,000 in net proceeds to the Company after the payment of debt issuance costs totaling $3,000. The note matures on December 2, 2019. After 180 days from the date of the note agreement, the note is convertible at a conversion price of 58% of the average of the lowest three trading price during the 10 days prior to the conversion date.

I went back into the prior agreement. Their definition of market price was defined by the lowest trade price. They corrected the wording appropriately in the subsequent section note. That wasn't the first time I had seen that definition though from memory(been a while).

Two areas put a major skew on the crunch. The first couple weeks after April 15th(EMA) and the two weeks after June 4th. It's a positive skew...so I am not going to use it. Did EMA convert more after the rise in price after April 15th and how many converts from June 4th before the low of .0017. This is fun!....trailing or forward? Worst case vs best case compared to average. Crunch.. crunch...crunch.